If the Liabilities of a Business Are $85,000 and the Owners

question 212

Multiple Choice

If the liabilities of a business are $85,000 and the owners' equity is $110,000, which of the following is a true statement?

• A) Assets equal $25,000.
• B) Assets equal $195,000.
• C) Assets equal $110,000.
• D) Assets equal $85,000.
• E) It is impossible to determine the value of the assets.